So, even if he doesn't ever do another deal...he is still up $10,000!

It’s a great reminder to trust your own due diligence and not let others make critical decisions for you, like hiring a property manager.For future investments, building a trusted team and maintaining direct oversight is key, even with remote deals.

Each deal comes with a different set of surprises even for the most experienced operators.Take your time and don't rush it. 

This would be my first real estate investment, making the decision even more critical.I understand that backing out would mean losing the $2,000 earnest deposit.

I live in Sacramento, and have noticed that people are offering either equal or above asking price even for homes that sometimes need 80-100k in repairs and I can't see how they would even make a profit doing that.

You got a screaming bargain that was so good that no one else wanted it from the provider side, even for free.

But the competition is high so cash flow or even break even can be an unphill battle unless you're willing to put money into the property.

.: Thanks, Dan, but that's not helpful since it (a) involved a car, not an investment property, and (b) wasn't even used.The advice from almost every investor is to protect your investments with an LLC or umbrella insurance.

The 7 isles project hasn't even started.

Even if they don't fix it you would need to hope a magistrate decides its severe enough to evict.